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[Alpha Biz=(Chicago) Reporter Kim Jisun] The Korea Exchange announced the designation of Hanwha and Hanwha Aerospace as unfaithful disclosure corporations, citing the reversal of the disclosure.
The Korea Exchange's Securities Headquarters said on the 3th that it will announce the designation of unfaithful disclosure corporations for Hanwha and Hanwha Aerospace in accordance with Article 34 of the Securities Market Disclosure Regulations. The move comes after Hanwha decided to withdraw its plan to acquire shares and investment securities of Hanwha Precision Machinery on July 29 last year.
Instead of selling its defense division to Hanwha Aerospace in July last year, Hanwha announced that it would acquire Hanwha Precision Machinery, a subsidiary of Hanwha Aerospace, for about 525 billion won to strengthen its business capabilities. Hanwha said in a public announcement on the 26th of this month, "We lifted the stock trading contract under mutual agreement as rapid changes in business and business environment made it uncertain to enhance product and business competitiveness and secure synergy due to the acquisition of stakes in Hanwha Precision Machinery."
The term "unfaithful public disclosure corporation" means a company that fails to faithfully perform its obligation to disclose under the Capital Markets Act and regulations on the disclosure of the securities market, and commits a violation of the public announcement, reversal of the public announcement, or change of the public announcement.
After deliberation by the Securities Market Listing Disclosure Committee, Hanwha and Hanwha Aerospace will decide whether to designate unfaithful disclosure and whether to impose penalty points and disclosure violation fines. If they are designated as unfaithful disclosure corporations and penalty points are accumulated, stock trading may be temporarily suspended. The exchange will finalize specific results such as whether or not to designate an unfaithful disclosure corporation in the future and re-publicize them.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
